Nippon Soda : Consolidated Financial Results Summary for the Six Months Ending March 31, 2023

Consolidated Financial Results Summary

for the Six Months of the Fiscal Year

Ending March 31, 2023

Nippon Soda Co., Ltd.

November 4, 2022

1

Contents

１．Consolidated Financial Results for the Six Months of the Fiscal Year Ending March 31, 2023

・Overview	...	3
・Performance by Segment	...	4
・Net Sales by Sub-segments of Chemicals	...	5
・Net Sales by Sub-segments of Agro Products	...	6
・Balance Sheets	...	7
・Statement of Cash Flows	...	8
・Difference from Forecast of Financial Results	...	9 - 10

２．Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023

・Overview

・Performance Forecast by Segment

３．Reference Materials

... 12

... 13 - 14

... 15 - 16

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Consolidated Financial Results for the Six Months of the Fiscal Year Ending March 31, 2023 (Overview)

(Billions of yen)	2022/3 2Q	2023/3 2Q	Change (amount)	Change (%)
Net sales	64.43	80.74	16.31	25.3%
Operating profit	3.49	8.98	5.49	157.3%
Share of profit (loss) of entities accounted	0.86	2.78	1.92
for using equity method
Ordinary profit	4.98	13.97	9.00	180.8%
Profit attributable to owners of parent	3.15	8.89	5.74	182.6%
Exchange rate (JPY/USD)	109.6	132.5	22.9
Exchange rate (JPY/EUR)	130.7	139.4	8.7

・Increased sales in the Agro Products, Chemicals and Trading.

・Revised sales price due to a substantial rise in price of raw materials and fuel.

・Recorded inventory valuation gain due to a rise in price of raw materials and fuel.

・Increased share of profit of entities accounted for using equity method.

・Exchange rate changed for the weak yen.

・Operating profit difference: 5.49 breakdown

Price difference: 5.81（of which, rate difference: 3.32）

Volume difference: 3.48

Material purchase price difference: (5.15) (of which, rate

difference: (1.72))

Others: 1.35 (of which, inventory valuation gain: 2.49)

【Operating profit （year on year）】

（Billions of yen）

3.48 （5.15）

5.81	1.35	8.98

3.49				Operating profit
					difference:5.49
2022/3	Price	Volume	Material	Others	2023/3
	2Q		difference		difference	purchase			2Q
						plice difference			3

(Performance by Segment)

Consolidated Financial Results for the Six Months of the Fiscal Year Ending March 31, 2023

(Billions of yen)	2022/3	2Q	2023/3 2Q	Change (amount)
Net sales		Operating	Net sales	Operating	Net sales	Operating
		profit	profit	profit
Chemicals	19.67		1.46	23.35	2.39	3.68	0.93
Agro Products	17.61		0.12	25.31	4.25	7.70	4.13
Trading	17.49		0.58	19.57	0.79	2.08	0.20
Transportation and Warehousing	2.19		0.34	2.18	0.38	(0.01)	0.04
Construction	2.83		0.55	5.24	0.49	2.40	(0.06)
Others	4.64		0.53	5.09	0.42	0.45	(0.11)
Adjustments	-		(0.10)	-	0.26	-	0.36
Total	64.43		3.49	80.74	8.98	16.31	5.49

・Chemicals：Increased sales of pharmaceuticals & industrial fungicides, fine chemicals and specialty chemicals due to expansion of their demands and revision of sales price reflecting the substantial rise in the price of raw materials and fuel.

Decreased sales in the industrial chemicals and eco-business products due to implementation of structural reforms in the caustic potash and related businesses.

・Agro Products：The sales for export grew in insecticides, acaricides and fungicides, as front loaded demand occurred in those products due to the disruptions on global marine transportation and anticipation of rising sales prices.

・Trading：Increased sales of various organic and inorganic products.

・Transportation and Warehousing：Increased sales of warehousing and decreased transportation.

・Construction：Increased plant construction work (Decreased profit due to adjustments regarding the Accounting Standard for Construction.

4

(Net sales by Sub-segmentsof Chemicals)

Consolidated Financial Results for the Six Months of the Fiscal Year Ending March 31, 2023

(Billions of yen)

consolidated-Non	Industrial chemicals
Fine chemicals
	Specialty chemicals
	Eco-business
	Pharmaceuticals &
	industrial fungicides

Subtotal

Subsidiaries sales, elimination of transactions, etc.

Net sales of Chemicals

2022/3 2Q		2023/3 2Q		Change		Main factors of change
		(amount)
					Phosphorus chloride↑, Caustic soda↑
6.45		5.79		(0.66)
			Caustic potash↓, Potassium carbonate↓
						Sodium cyanide↓
3.98		4.89		0.91		Secondary battery materials↑
			Color developers for thermal paper↑
3.14		3.71		0.57		VP-POLYMER↑
3.11		2.37		(0.74)		NISSO HI-CHLON↓
4.14		5.77		1.62		NISSO HPC↑
			Pharmaceutical intermediates↑
20.83		22.53		1.70
(1.16)		0.82		1.97
19.67		23.35		3.68

・Industrial chemicals：Increased sales of phosphorus		【Chemicals: Quarterly net sales and operating profit】
chloride and caustic soda due to revision in sales price.				1Q	2Q	3Q	4Q	(Billions of yen）
Decreased sales for export of sodium cyanide.
Terminated the production of caustic potash and			Net sales		Operating profit
potassium carbonate, etc., due to implementation of	60				3.0			（1st half） 2.64
structural reforms.				46.60		2.47
・Fine chemicals：Increased sales of secondary battery	50	43.89		2.5	0.24			2.39	（2nd half）
materials and color developers for thermal paper.	40	13.70		（2nd half） 2.0	0.78			0.56	0.96
		（1st half） 23.40
・Specialty chemicals：Growth in sales of KrF photoresist	30		1.5	0.20
material "VP-POLYMER".		10.51	23.35						（1st half）
20		1.0
	11.87					1.83
・Eco-business：Decreased sales for export of water	9.76	（1st half）				1.68
		1.26
treatment agent "NISSO HI-CHLON".	10	9.91	11.48	23.20	0.5
・Pharmaceuticals：Growth in sales of pharmaceutical	0	2022/3	2023/3	2023/3	0.0	2022/3		2023/3	2023/3
additive "NISSO HPC" and active pharmaceutical ingredients.
results	2Q	Forecast		results		2Q	Forecast	5